Can cst/vat be adjusted

Dear Sir,

 

Please consider following scenarios:

1) Manufacturing company pays 2% CST on Raw Materials. Can it adjust against VAT payable on finished goods within state sales?

 

2) Manufacturing company pays 2% CST on Raw Materials. Can it adjust against CST payable on finished goods sales outside the state?

 

3) If a company has head office in New Delhi and has branch in Gujarat & Uttar Pradesh. Goods are purchased from Gujarat and Sold in Uttar Pradesh. Is it correct that we have to pay 5% VAT in Gujarat and 5% VAT in Uttar Pradesh. Total = 10%?

 

4) If a trading company pays VAT on purchasing goods and then makes an inter-state sale using a C-Form. Can 2% CST be setoff by 5%Vat which means only 3% has to be paid in the end? 

Replies (11)

Hi Sharique,

1. No. You wont get any credit / setoff for CST paid on purchases, It should be added to net purchase.

2. Again No. CST paid on purchases can not be adjusted against CST payable. But if you have excess vat (Input vat less output vat), then you can adjust the same with CST payable.

3. Assuming you have separate billing locations at Gujarat & New delhi, you will get credit for input vat for goods purchased from Gujarat & since you will charge output vat for goods sold at UP, question of 10% does not arise.

4. Yes you can. You will be still having 3% credit (5% input vat less 2 % CST)

Dear experts - Please correct me if I am wrong & adivice me & Sharique accordingly.

Thanks

1. no

2. no

3. For Purchase in Gujrat You Will get Input Tax Credit @ 3% (2% Retaintion for Stock Transfer) and you Will Charge Local Vat @ 5% in Utterpradesh Total Vat Payment= 5+2 = 7%

4. Yes You Can Claim Vat Input from CST output...... Still You Have 3% Excess Credit, Claim it From Vat Payble

Thank you Mr.Shetty and Mr. Kumar.

 

Furthermore, I would like to ask if there is excess 3% VAT (As in case 4) - Can it be setoff against CST Payable on raw materials (As in case 2)?

Yes you can reduce the cst payable amt from the excess input credit.

WHAT IS PROCESS OF CST FOR C FORM APPLICATION 

Yes You Can Adjust Input Tax Credit with CST Payble

 

Thank you Mr.Shetty & Mr.Sonu.

I would like to know if the VAT paid on purchase is refundable in full and complete in case of stock transfer or interstate sale? Is complete 4%/5% refundable/adjustable or anything paid in excess of 4% is only refundable? I am asking this because of the below excerpt from white paper-

"Even for stock transfer/consignment sale of goods out of the State, input tax paid in excess of 4% will be eligible for tax credit."

Sir, We pay input VAT 5% for certain goods & do interstate billing for CST 2% against C form. We will pay the 2% CST. Shall we adjust the whole 5% Input VAT against Tax Payable

 

Sir,

My question is what do we do with the (cst on sales - cst on purchase) ? Is it adjusted with the VAT ?

Dear Sir

Please give me solution to my query I have excess VAT (Telangana State)  credit amount Rs.200,000/- in form 200, CST Liability Rs.100,000/- by mistake am transfered total VAT credit amount to CST (Form IV), now can i adjust this Excess CST amount to current CST Liability?

 

 

 

Dear sir,

please reply one question how can adjust in cst to vat ( up return only )

Cst credit and vat payable

i can adjust cst to vat...please reply 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details